House Ways and Means Committee Reviews Proposal to Restore Full Gambling Loss Deductions

The House Ways and Means Committee is considering legislation that would restore the deduction for gambling losses to 100% of winnings. The provision is attached to House Resolution 10357, the Digital Asset Tax Certainty Act, and appears on page 95 of the 98-page package. It eliminates the existing 90% limitation, allowing losses from wagering transactions to be deducted in full against gains for taxable years beginning after December 31, 2025.

As reported by Casino.org News, the proposal draws directly from the FULL HOUSE Act. That measure was introduced in January by Rep. Max Miller (R-OH) and carries cosponsorship from four Democrats and two Republicans, including Nevada Democrats Reps. Steven Horsford and Susie Lee.

Bipartisan Backing and Market Signals

Horsford welcomed the provision’s inclusion. “People should not pay taxes on money they never earned. That’s why I introduced the bipartisan FULL HOUSE Act and have worked for months to secure a full repeal of the unfair gambling tax that Senate Republicans enacted last year,” Horsford said. He continued that for Nevada this is about protecting the economy and the workers and small businesses who depend on tourism and gaming.

Rep. Dina Titus, who authored the related FAIR BET Act, added her support. “Very pleased to see that my gambling loss tax deduction fix has finally been included in a tax package,” Titus said. “I encourage my Ways and Means colleagues to push it through this week as quickly as possible.”

Prediction markets have responded. More than $3.1 million has been traded on contracts tied to restoration of the deduction, with implied odds now at 48% for repeal by April 1, 2027.

Legislative Outlook for Gaming States

Committee review this week marks a concrete step toward reversing the prior limitation. Nevada lawmakers have positioned the change as essential to shielding tourism and gaming livelihoods from inequitable tax treatment. Whether the provision advances beyond this stage will turn on broader negotiations around the tax and digital asset measures it accompanies, with direct consequences for player economics and state-level industry activity in the near term.

Reporting: Casino.org News

Generated by SCCG’s automated editorial system from published source reporting. SCCG Management holds editorial responsibility.